NYRA wants to take over NYC OTB
Bankrupt operation carries $228 million in debt
By JAMES M. ODATO, Capitol bureau
Last updated: 4:00 p.m., Friday, January 8, 2010
http://www.timesunion.com/AspStories...storyID=886659
ALBANY -- Despite its own fiscal problems, the New York Racing Association is proposing to take over the bankrupt New York City Off-Track Betting Corp.
NYRA President Charles Hayward got up at a hearing of the Assembly and Senate and revealed that his not-for-profit organization will introduce a plan to take over the OTB in seven to 10 days.
NYC OTB, with 1,381 employees, entered bankruptcy in December. Hayward began publicly declaring that the association expected to run out of money next year and may have to close the Belmont and Saratoga meets as a result. He emphasized that NYRA needs funds from the state because of the failure by state leaders to choose an operator for an Aqueduct racino. He also noted that NYRA is going to be hurt by OTB's bankruptcy because it is owed some $15 million.
NYC OTB entered bankruptcy protection to shield itself from $228 million in debts. That includes $42 million owed to the state's harness and thoroughbred tracks, about $14.7 million alone owed to NYRA, and between $30 million and $40 million owed to the state of New York.
Hayward initially hailed the move, saying he thought the OTB would emerge from the bankruptcy stronger -- just as NYRA had after its own bankruptcy, which ended after the state agreed to provide $105 million and help it wipe out its debt.